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Justin's Plant Store, a retailer, started operations on January 1. On




With respect to a corporation, select the statement that is correct.;a. Its organization requires an approved charter which is governed by state law.;b. Ownership rights to the corporation are transferable.;c. A corporation is a separate legal entity from its owners.;d. Stockholders have limited liability.;e. All of the above are correct.;Save Answer;2.;(Points: 1);Which of the following represents the shares currently in the hands of investors?;a. Authorized shares;b. Issued shares;c. Outstanding shares;d. Unissued shares;e. Treasury shares;Save Answer;3.;(Points: 1);The par value of common stock is the;a. average market price of the stock during the period in which it is sold.;b. ceiling (maximum) amount above which the stock may not be sold initially.;c. floor (minimum) amount below which the stock may not be sold initially.;d. selling price of the stock at the date it was issued by the corporation.;e. same as the market value for the stock on the date of issue.;Save Answer;4.;(Points: 1);Vaughan Company has one class of capital stock issued. It is;a. common stock.;b. preferred stock, voting.;c. preferred stock, noncumulative.;d. common stock, nonvoting.;e. None of the above is correct.;Save Answer;5.;(Points: 1);If Lynch Corporation sells and issues 100 shares of its $10 par value common stock at $11 per share, the entry to record the sale will not include a;a. Debit to Cash of $1,100.;b. Credit to Contributed capital in excess of par of $100.;c. Credit to Common stock of $1,000.;d. Credit to Retained earnings of $100.;e. All of the above would be included.;Save Answer;6.;(Points: 1);The conversion feature on convertible preferred stock enables the stockholder to convert it to;a. convertible bonds.;b. cash.;c. common stock.;d. products of the company.;e. dividends in arrears.;Save Answer;7.;(Points: 1);Choose the correct definition for par value from the following;a. The amount that a corporation must pay when it exercises its right to convert shares of stock.;b. The equity of one share of outstanding stock in the issuing corporation's net assets as recorded in the corporation's accounts.;c. An arbitrary value placed on a share of stock at the time the stock is authorized in the corporate charter.;d. The costs of bringing a corporation into existence, such as legal fees, promotor's fees, and amounts paid to the state to secure a charter.;Save Answer;8.;(Points: 1);Guest Corporation issued (sold) 1,000 shares of its no par common stock for $110 per share. The bylaws established a stated value of $100 per share. The transaction is recorded as an increase in contributed capital of;a. $ 100,000.;b. $ 110,000.;c. $1,000,000.;d. $1,100,000.;e. None of the above is correct.;Save Answer;9.;(Points: 1);Which of the following statements is true?;a. An initial public offering (IPO) occurs when the company first offers their stock for sale to the public.;b. A seasoned new issue is the term used for any additional sales of new stock to the public after the IPO.;c. An underwriter, usually an investment banker, advises the corporation on matters concerning the sale of shares of stock and helps to market those shares for a fee.;d. A and B are true.;e. All of the above are true.;Save Answer;10.;(Points: 1);Shares of stock eligible for dividends are;a. the number of shares of authorized.;b. the number of shares issued.;c. the number of shares outstanding.;d. the number of treasury shares.;e. none of the above.;Save Answer


Paper#26205 | Written in 18-Jul-2015

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